Energy transition, New Industry Brazil and the role of the Ministry of Science, Technology and Innovation and of the Funding Agency for Studies and Projects

Abstract

Given the fact that the world increasingly values industrial production with a lower carbon level, Brazil has several advantages due to its cleaner energy matrix, its greater competitiveness in the production of solar and wind energy, its leadership in the production of biofuels and its reserves of critical minerals. Following the launch of the New Industry Brazil (NIB), an industrial policy with more than R$ 300 billion in funding for the period 2023-2026, the country established a set of actions to enhance the development of technologies and strengthen the industrial sector. NIB is based on internationally recognized industrial policy principles, such as the focus on missions, the centrality of technological development, and greater coordination and articulation between government agencies. In this context, the Ministry of Science, Technology and Innovation reaches protagonism, increases the National Fund for Scientific and Technological Development (FNDCT) and establishes the guidelines for the National Strategy for Science, Technology and Innovation in the period 2023-2030. Financier of Studies and Projects (Finep) is expected to invest R$ 50 billion within the scope of the NIB, prioritizing the induction of structuring projects, with a high degree of innovation and economic-social relevance and aimed at the energy transition and decarbonization of national economy. This article discusses the international context, as well as the mentioned policies and actions, seeking to present the connections between neo-industrialization and energy transition.